With a fast-growing Indian economy in urban as well as non-urban areas, new avenues are opened for people to start their own businesses and become financially sound and independent but there is almost always this confusion that needs to be dealt with and it is the type of business that should be started especially in non-urban areas along with getting funds because there is a lack of financial background in rural areas, so starting a business that is feasible is even harder. In this article, we will discuss the top 5 ideas that can be implemented using a relatively smaller capital and a high return on investment.
Also Read: Top Low Investment Business Ideas
5 Most Profitable Businesses In India Apart From Metro Cities
1. Small-scale manufacturing units
Non-urban areas are the perfect place to start small-scale manufacturing units to cater to the demand in the local area as well as supplying products to nearby towns and cities. There can be a variety of products for which manufacturing units can be set up. Some of them are:-
- Agarbatti
- Candle/ matchbox
- Paper cup/paper plate
- Packaging products
- Disposable bags, etc.
These products usually have a huge demand in the urban areas and have an abundance of raw materials in the rural areas so it’s one of the most perfect businesses to start with a good return on investment.
Also Read: Best Profitable Small Scale Industries In India
2. Poultry/live-stock farming
The poultry farming business is considered to be one of the fastest-growing divisions of the agriculture sector. Around 3 million farmers and 15 million agrarian farmers are working In the poultry industry and have helped in the contribution of approximately 2600 crore to the national income.
Moreover, it is not at all capital intensive and does not require much land. All it requires is the person to have some experience in this domain to run a business. As far as the demand is concerned it is very high in both urban as well as rural areas and owing to this huge demand the return on investment turns out to be pretty high. Initially, you can start with a limited number of birds and also the quality and variety of birds, and with time can increase the business. Along with the local demand, you can advertise and sell the meat/eggs in cities.
3. Milk/dairy center
Due to the abundance of milk in rural areas running a dairy business is a great business idea. The only challenge is setting up a local dairy project initially with the requirements of funds. However, the initial funding is not that high and money can be availed from financial institutions like banks and NBFCs.
A decision should be made on the number and sites of collection centres that are needed in the area covered by the group. Many factors influence this decision:
- number of milk producers;
- milk volume of each producer;
- total volume of milk;
- time to transport the milk;
- distance from members to the collection centre;
- distance from the collection centre to the processing centre or market;
- whether milk collection is once or twice per day.
4. Microcredit Services
The penetration of financial services has increased significantly since Independence but there are many areas still where there is a lack of awareness about managing finance… People in these areas still fall prey to the local money lenders who usually exploit them and charge a very high-interest rate. Micro‐lending services thus can be one of the ideal small business ideas for small towns in India.
What Is Microcredit?
Microcredit is a form of microfinance that is essentially lending extremely small loans to individuals in mostly non-urban areas to help them become self-employed or grow a small business. Microcredit is also known as, microlending or microloan.
The structure of microcredit however frequently differs from that of a traditional loan from a bank as many of the money borrowers are poor and don’t usually have collateral to offer. In some instances, there might not be an agreement at all. Because many applicants cannot offer collateral, microlenders often pool borrowers together as a buffer. After receiving loans, recipients repay their debts together. Because the success of the program depends on everyone’s contributions, this creates a form of peer pressure that can help to ensure repayment.
These services are provided especially to those people who are trapped in a vicious cycle of poverty and don’t have enough knowledge about money borrowing. Unlike the typical financing organizations microfinance institutions are focused on making the entrepreneur successful.
Also Read: Business Ideas For A Post Covid World
5. Cold storage business
Another good business idea, especially in rural areas and small towns, is that of cold storage.
Fruits, vegetables, and dairy products spoil quickly in non-urban areas due to the lack of cold storage units available. Owing to this running cold storage can be a highly profitable business. The initial expenditure may be a bit high but if a good loyal customer base is acquired the profits can really be very high, generating good incomes for the individuals running the company.
Some benefits of cold storage plant are:-
- It reduces the wastage of vegetables and fruits.
- It can be used to store medicines or vaccines.
- Off-season farm products are available at affordable rates.
- It helps in providing remunerative prices to farmers.
- Packaged or processed food are available to customers.
